The Romanian Finance Ministry announced on Friday, August 23, that it has drafted and launched for public debate a bill that would set the general conditions for establishing and functioning of the national development banks, News.ro reported.

These banks are defined as having a role in “directly addressing the financial market failures”. Based on ex-ante analysis, these banks will act to prevent and mitigate “the financial market malfunctions and financing gaps” in accordance with European Union law. The development banks will provide financing under market conditions, according to the ministry.

At the same time, the ministry says that development banks will offer financial-banking products “to target categories of eligible beneficiaries, identified through ex-ante analysis on financial market malfunctions and financing gaps,” within the project funded by the European Commission, to set up development banks.

The development banks are wholly owned, directly, for the entire duration of their operation, by the Romanian state, through the Finance Ministry. The share capital is insured from the state budget and / or from the privatization revenues recorded in the State Treasury account.

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editor@romania-insider.com